MBMA Doubles Nickel Output in Early 2024 with Strategic Investments
Merdeka Battery Materials (MBMA) has reported a significant increase in nickel production for the first half of 2024. Output more than doubled year-over-year due to expansions and improved infrastructure at its Sulawesi Cahaya Mineral (SCM) mine. These developments support MBMA’s goal of meeting rising global nickel demand, especially for battery applications.
Breakdown of Nickel Output and 2025 Demand Outlook
Between January and June 2024, MBMA produced 3.93 million wet metric tonnes (wmt) of nickel ore. This included 3 million wmt of limonite and 0.93 million wmt of saprolite. Robust demand for limonite is expected to continue into 2025, prompting MBMA to increase contractor partnerships and scale up mining activities.
SCM Mine Supports NPI and Matte Expansion
The SCM mine is central to MBMA’s strategy, supplying ore for nickel pig iron (NPI) and high-pressure acid leaching (HPAL) plants. The company will also supply limonite to two upcoming plants operated by PT ESG New Energy Material and PT Meiming New Energy Material, which are scheduled to begin operations in mid-2025.
Record Production Reflects Operational Growth
MBMA’s RKEF furnaces produced 42,782 tonnes of nickel in NPI in H1 2024, more than double the previous year’s output. Nickel matte production surged fivefold to 25,443 tonnes, underlining MBMA’s expanded capacity and successful investment strategies.
2024 Production Targets Adjusted for Maintenance
MBMA has set its 2024 matte production guidance at 50,000–55,000 tonnes. Meanwhile, its NPI target has been revised down to 80,000–85,000 tonnes due to scheduled maintenance at one of its smelters, which is expected to temporarily reduce output.
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